Buying A Van With A Guarantor Loan

April 13, 2016/0 Comments

If you need a van, it is likely that you need to find a finance solution. Unless the van is of low value and quality or you have a lot of money, you’ll likely find that the van will be out of your financial reach, so this is why obtaining finance makes sense. Of course, this is easier said than done and many people have struggled to find suitable finance solutions in recent times. If you are looking to make the most of your opportunity, you need to know what your options are and this is the same for anyone looking for finance.

Thankfully help is at hand and you will find that buying a van with a guarantor loan makes sense. In fact, whatever you need finance for, you’ll find that obtaining a guarantor loan is one of the most sensible ways to take care of your finances. This is because a guarantor loan is a much more affordable way to obtain finance and this is all down to the presence of the guarantor.

Think about the Restrictions that Loan Applicants Face

However, the fact that there is a need for guarantor loans is down to the harsher restrictions that traditional lenders are placing on loan applications. It used to be that banks would provide loans to the majority of applicants but nowadays, you need to pass very strict tests to find the finance you are looking for. If you have a bad credit score or you don’t have much of a credit rating, you’ll find that banks will be unwilling to provide you with a loan or they won’t want to give you a loan at an affordable rate of APR.

When you take out a loan at a high rate of APR, you’ll find that you end up paying an excessive amount of money to facilitate the loan. This is to justify the level of risk being taken by the lender but it can actually price many people out of finding finance and if you are looking to buy a van, you may find that you are left frustrated in your actions.

This is why a guarantor loan is such an appealing option. The role of the guarantor provides the lender with confidence and this means that they will offer you a loan with a much more attractive rate of APR. This should help you to pay the loan off sooner and with a smaller amount of money each month. You need to think about the money you spend every month and you need to think about how long you will be paying the loan back for.

These are two key aspects in determining the amount of money you will eventually spend but with a guarantor loan, you can significantly reduce the amount of money that you need to spend.

The Guarantor needs to know their Responsibilities

The presence of the guarantor will make a massive difference to you but the guarantor needs to be comfortable about their role. If the borrower is unable to make the payments on their loan, the guarantor has to step in and make these payments. If the guarantor is unable to do so, they will find that they could be pursued for the money and their own credit rating can be affected. These are serious issues for people, and this is why it is vital that people know what the position of a guarantor entails before they sign up for it.

However, if you have a guarantor that understands the role and is willing to take this role on, you should find that you can find the finance you need. There are many reasons why investing in a van is a smart option. It may be that it will help you to find work or it could allow you to help out friends or family members at various points in their life.

It may even be that you are looking to support your business, and a van would be a great addition to your company.There is a lot to be said for taking out a guarantor loan to back your company and a growing number of firms are using guarantor loans in this manner.

Whether you are looking to buy a van or you need finance for some important reason, a guarantor loan is likely to be the best way to obtain finance in a sensible and affordable manner.

Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.